Cornice 4GB SE s Cornice 4GB Storage Element

Cornice today announced a revolutionary new 4.0-gigabyte Storage Element
(SE). This new product will allow OEMs to extend the functionality of the latest
consumer electronics devices while offering revolutionary new features at shelf
prices that can only be enabled by Cornice’s unique low cost architecture. MP3
players, cell phones, personal video recorders and GPS devices will all be
immediately enhanced by this new SE. The new Cornice 4.0- gigabyte SE is
protected by Cornice’s second-generation ruggedness design, Crash Guard II™, and
can withstand excessive shaking, extreme drops, and other abuse without
skipping, stopping, or crashing. The 4.0-gigabyte SE with Crash Guard II
technology will be available in July 2005 at $ 65 per unit in quantities of
10,000.

Cornice 4GB SE Cornice 4GB Storage Element

Cornice Inc., an innovator in consumer storage solutions — today announced a
revolutionary new 4.0-gigabyte Storage Element (SE). This
new product will allow OEMs to extend the functionality of the latest consumer
electronics devices while offering revolutionary new features at shelf prices
that can only be enabled by Cornice’s unique low cost architecture. MP3 players,
cell phones, personal video recorders and GPS devices will all be immediately
enhanced by this new SE.

"The market is demanding increasing capability in ever smaller devices. iPods
are becoming computers and computers are shrinking very rapidly. At the same
time people still believe that small devices should be inexpensive and will not
accept devices that aren’t reliable," said Rob Enderle, principal analyst for
the Enderle Group. "The ideal capacity for most of these devices, today, is
4.0-gigabytes because it provides the best balance between capacity and
manageability. Currently Cornice makes the most reliable product with this
capacity that can fit in a sub $ 199 device and that combination gives them a
serious advantage in this emerging market."

Cornice’s unique architecture lowers cost by using only one side of the disk and
removing components not needed in small portable electronic devices. At
4.0-gigabytes on one side, Cornice remains firmly in the leadership position for
storage density.

“The CE market has clearly demonstrated the demand for affordable, high capacity
storage in small packages with incomparable growth rates in hard drive-enabled
MP3 players, mobile phones, and other pocket-able electronics,” said Camillo
Martino, Cornice’s new president and chief executive officer. “Having shipped
millions of components into multimedia and cellular products, Cornice now has
the broadest design expertise in the industry and with the launch of a whole new
set of unique features beyond just capacity, is poised to lead the way in moving
the industry to smarter and more capable storage.

Durable Devices for Today’s Active Lifestyle
Cornice technology ensures that consumer electronics devices will provide
continuous and uninterrupted playback even during today’s most active
lifestyles. The new Cornice 4.0- gigabyte SE is protected by Cornice’s
second-generation ruggedness design, Crash Guard II™, and can withstand
excessive shaking, extreme drops, and other abuse without skipping, stopping, or
crashing.

Crash Guard II™ consists of:

Active Latch – When dropped, the most common damage to a hard drive occurs when
the head scrapes across the surface of the disk (not unlike the needle
scratching across an old vinyl LP record when the turntable was bumped). Cornice
not only removes the head from the disk, but also securely locks it in place
with an active latch mechanism whenever the drive is not actively seeking data.

Skip Control – Hard drives are going places they have never been before –
jogging, 4-wheel driving, skydiving – and are expected to operate even with
excessive and repetitive motion. Cornice designed the SE from the ground up to
withstand the most extreme conditions while providing continuous playback
without skipping or restarting.

Drop Safe – The newest feature in the Crash Guard family allows the SE to
actually sense being dropped. This means that even if the SE is in the middle of
reading or writing data to the disk, it can immediately react and place the head
safety under the active latch well before the unit actually strikes the ground.

Since its initial launch in 2003, Cornice has driven innovation and achieved
first-to-market status in five separate categories – the mobile phone, digital
video camera, pocket-able digital audio, personal storage (USB stick storage),
and GPS markets with customers such as Archos, Garmin, Philips, Rio, Samsung and
Sony.

Pricing and Availability
The 4.0-gigabyte SE with Crash Guard II technology will be available in July
2005 at $ 65 per unit in quantities of 10,000.